Tax Relief for Digital Assets Advances, But Industry Demands More

The House Ways and Means Committee has advanced a bill that provides tax relief for digital assets, but it falls short of industry demands. The Digital Asset Tax Certainty Act, H.R. 10357, passed with a 38-5 vote on September 16.

Industry groups welcomed the move, but expressed disappointment that broader de minimis treatment for everyday crypto transactions and changes to when staking and mining rewards become taxable were not included.

The bill addresses a long-standing issue where spending cryptocurrency to cover blockchain fees could create a taxable disposition. It would eliminate gain-or-loss recognition for digital assets used to pay qualifying network and transaction fees of no more than $10, beginning with dispositions after December 31, 2027.

However, the industry is pushing for further changes to make digital assets easier to use for payments and network participation.